Trouble at US$10b crypto hedge fund Three Arrows sparks contagion fears

Representations of Ripple, Bitcoin, Etherum and Litecoin virtual currencies on a PC motherboard on Feb 14, 2018. PHOTO: REUTERS
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BEIJING (CAIXIN GLOBAL) - Rumours of cryptocurrency hedge fund Three Arrows Capital being on the brink of insolvency have sent shock waves through the crypto space, with industry observers predicting more trouble for the decentralised finance (DeFi) sphere as contagion spreads.

Three Arrows, also known as 3AC, is one of the highest-profile players in DeFi - a crypto ecosystem aiming to bypass traditional financial intermediaries through blockchain technology. With an estimated US$10 billion (S$13.86 billion) in assets under management (AUM) in March according to blockchain analytics platform Nansen, the fund has invested in a number of crypto and DeFi firms.

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